Free Essay

7-Eleven

In: Computers and Technology

Submitted By acheson6
Words 2460
Pages 10
1. Describe the type of supply chain used by 7-Eleven. For example are they agile, adaptable, aligned?

7-Eleven is the largest operator and franchisor of convenience stores in the world, with more than 46,000 outlets and currently selling 500 million litres of petrol, $500 million of merchandise and serving almost 80 million customers worldwide. With figures like this, you have to wonder how they did it? Aside from the fact that the store operates 24 hours a day, 365 days a year and hence adhere to the ‘convenience store’ label, 7-Eleven addressed some key aspects that often other organisations overlook. “We must be open to change to remain successful,” said7-Eleven CEO Joe DePinto (and recent “Undercover Boss”) at the conclusion of his Tuesday morning keynote address at the IFA 2011 Annual Convention. Noticing a need to change, 7-Eleven turned their whole outlook around, focusing on the franchisees instead of focusing on the headquarters of the organisation. After all, the franchisees are the ones that work at ground level with customers on a day to day basis, establishing relationships and recognising customer needs. 7-Elevens response to a changing marketplace yielded significant benefits and further more allowed the implementation of technology and supply chain integration to increase functionality.

An efficient supply chain maximises planning, organising and helps distribute a flow of the organisations product to end customers. This is done through implementing innovative ideas and technology as a part of effective business-to-business networks.

In regard to 7-Elevens supply chain, there were definitely some major factors implemented that wreaked great results. In 2002 7-Eleven signed a 7 year contract with EDS throughout the united states. As stated by Deepak Patel (the integration service line director at EDS), the purpose of this signing was to implement an “XML-based integration system to automate the supply chain process for 7-Eleven’s more than 1,700 suppliers.” Previously small suppliers that could not afford an integrated system were recording transactions through printed invoices. With the new system “small suppliers can log on to a secure website and use an ID and password to submit invoices and track their progress, said Morrow. Large suppliers can transition from EDI to webMethods' XML-based Integration Platform over a period of time so that all of their systems eventually will be able to communicate with 7-Eleven using XML for data transfer”. EDS will also enable and host Vcom, an ATM like device that allows customers to easily cash checks, purchase money orders and obtain other financial services.

The implementation of the new system was summed up perfectly by Chief information officer Sharon Stufflebeme. "This agreement aligns well with our business objective of flexibility and scalability and meets the need to adapt as we change and grow. These applications help provide the support we need to continue to deliver customers what they want, when and where they want it."

7-Eleven also implemented other key technologies and models, such as the SAP Retail Merchandising System and it’s centralized purchasing and distribution model which will be explained in further detail below. As a whole, Total Quality Management was introduced ensuring quality standards were met throughout all stages of production and supply. Through implementing various systems, 7-Eleven’s supply chain efficiency dramatically improved. Orders could now be electronically processed in under 7 minutes and delivery truck routes could be mapped and maintained. Thus, it is evident that implementing technological systems has a major affect on 7-Elevens supply chain.

2. Describe the product characteristics of 7-Eleven and how this impacts upon replenishment.

7-Eleven has always been a provider of small everyday needs such as snacks, confectionary, cigarettes and fast food. However with a constant changing environment and marketplace 7-Eleven has learned to adapt. Often customers will be looking for a ‘healthy alternative’, however due to work time constraints and product availability, they settle for the quick and easy fast food option. 7-Eleven has taken this on board and hence adapted their product range to cater for those looking for something healthier, while still owning the label ‘convenience’.

In targeting the healthier alternative, 7-Eleven has launched their very own ‘munch’ range of gourmet sandwiches, pastries and cakes; which is outperforming the market in terms of growth. Its new strategy aims to feature a new range of ‘food on the run’ products as well as a new store design to highlight the availability of food service.

Fresh Coffee To Go is another major area that 7-Eleven has implemented, offering quality coffee at extremely low prices. As a further marketing technique 7-Eleven have been involved in ‘Cup With A Cause” with the funds raised going directly to certain celebrities chosen charity. This helps 7-Eleven establish good community relations and promote their name.

7-Eleven has also recently entered into a binding agreement with Mobil Oil Australia Pty Ltd to acquire its retail fuels business. This allows them to target more distinct locations such as main roads, where fuel will be a necessity.

One major product area within 7-Eleven is its well known Slurpee range. Since the beginning of 7-Eleven Slurpee’s were said to ‘sell themselves’. However after a slow decrease of sales over the years, 7-Eleven embarked on a $22 million Project Energise program to reinvigorate the Slurpee brand. Through undertaking extensive quantitative and qualitative market research 7-Eleven were able gather customer feedback on popular product areas and therefore develop and implement a marketing strategy. One major strength of 7-Eleven’s retail operations system is its capability to monitor sales in real time. This quantitative research tool allows 7-Eleven to track sale information on a daily basis. An interesting statistic found was that fifty percent of all 7-Eleven customers reported Slurpee as, “one of the main reasons why they visited 7-Eleven.” In particular 72 percent of those aged 15 to 24 years old reported that the Slurpee was the reason that they visited a 7-Eleven! Hence by connecting with the Slurpee brand they could accelerate income considerably. 7-Eleven set out to create a unique and fun implementation of the Slurpee brand, targeting the youth and the ‘experience’ they receive when drinking. Unique cup designs and names including Brain Freeze! Cram more in! Colour your Tongue! Mix it up! were introduced and actual customers were called ‘Slurpers’. This created a huge amount of buzz and produced more than 20 percent growth in sales and profit.

One huge step 7-Eleven took was investing in a new centralised automatic stock replenishment system - SAP ERP and SAP NetWeaver. This model automatically creates and fills store orders, saving a huge amount of time and resources. These orders are automatically created based on system sales and inventory data. This process has Reduced deliveries into stores from 110 per week to just 30 per week. This allows for a smoother stock replenishment process.

3. Describe the Information Systems in use in 7-Eleven. Provide examples of software, its use and benefits. For example are real-time systems used? Are tracking systems in use?

The growing development of technology makes it hard for organisations nowadays to remain up to date. However 7-Eleven ensures that technological systems are continually updated and integrated into their franchises to keep ahead of the growing market and competitors. 7-Eleven implemented quite a number of systems in line with the Project Energise aim to improve store operations. The Franchise Matrix, which is used for a range of things, is a huge concept introduced into the organisation. A key feature is that it is used to automatically reorder stock as mentioned above. 7-Eleven franchises can now take advantage of the new Business-to-Business system which generates stock orders automatically using scanned sales data and allows them to modify the order based on local conditions.

As part of the Franchise Matrix the user is provided with real time reporting of sales, profitability data and customer behaviour by measuring store performance and engagement against ten Key Performance Indicators (KPI’s). Such aspects include the analysis or strengths and weaknesses , company image, gross profit etc. SAP defines that “The system can tailor stock levels, pricing, promotions and optimal store layouts to maximise customer spending. Franchisees can compare KPIs to benchmark against 'like stores'. This allows franchisees to implement success strategies used in more profitable stores to improve their own performance.” An example of this is placing separate products that go well together next to each other. This way when a customer buys one they will be tempted to buy the other. Strategies like this are concepts that can easily be implemented with considerable benefit. As stated by Dennis Lewis, chief information officer, “Our supply chain and merchandising processes deliver cost and management efficiencies at enterprise level while retaining store level decision making and control,” continued Lewis. “SAP enables us to deliver transparency to our franchisees and is a fully integrated aspect of our business processes and therefore franchisee training programs at store level.”

A great example of implementing an effective and efficient system is that of Seven-Eleven Japan (SEJ). Seven-Eleven Japan established a solid information system to gather data about the latest trends and demands and was then able to use this data for product replenishment. Seven-Eleven Japan wanted to implement a system to discover who the customers actually are and also implement a product tracking system. An Integrated Service Digital Network was used to allow different franchisees to access the central database and hence all of the relevant information.

The process taken was that for every single customer the checkout clerk would input their gender and estimated age. Once this occurred they would then go ahead and scan the items. The relevant data is passed on to the central database through the digital network. The tracking system is also simultaneously processed. Finally analysis is undertaken on all the collected data, allowing management to recognise the products that generate the greatest profit in certain locations and stores. As a result of this process, franchises can recognise the greatest product areas and hence integrate these products into the automatic replenishment process, creating an efficient and effective environment.

4. Describe the use of Web-based services and E-commerce used by 7-Eleven.

7-Eleven has been solely about in store and over the counter purchases. However, the constant rise and development of technology enables other organisations such as WalMart to become involved in E commerce and hence damage competing stores market. 7-Eleven Japan has been the biggest focus point for E-commerce however E-commerce is seen as just a tool, not an end in itself. In regard to this, 7-Eleven has had little to do with E-commerce over the years, and instead primarily focused on providing customer needs in beneficial areas and locations. However 7-Eleven has implemented quite a few side projects which greatly use the internet’s benefits. One example is the Seven-Meal service which prepares meals and packages of cooking ingredients for those that find daily meal perpetration inconvenient. Items can be ordered by telephone, fax, and Internet, or at Seven-Eleven stores and can be picked up at the store or delivered using special vehicles that can keep the food at required temperatures.

However, more recently 7-Eleven Japan have launched their very on E-commerce website called 7dream. The purpose of 7dream is to allow shoppers to browse through over 100,000 items which include flowers, music and photo supplies. The way the site works is that customers can place orders online, and then go to a local 7-Eleven franchise and pay and collect their products. Although there is a distinct lack of internet service and connections in Japan, 7-Eleven Japan will still fully go ahead will E-commerce functions, and have installed terminals within stores. At the launch of the website in Tokyo, chairman Toshifumi Suzuki stated, "This will be a first step toward the full-fledged start of business-to-consumer e-tailing in a uniquely Japanese style based on the extensive network of the nation's convenience stores."

E-commerce has taken off quite considerably in Japan despite the stagnant economic situation. “Revenues have expanded every year by around 17% since 2005, and are expected to grow at nearly 10% a year for the next five years.” The managing director of Nomura Research Institute, Teruyasu Murakami,, stated that e-business in Japan had grown steadily since the mid 1990s. He added that between 500 and 800 e-businesses opened their virtual doors in Japan each month. Murakami also said that Japanese firms are starting to innovate and create new business models. He said a company such as 7dream.com would only be possible in Japan, where convenience stores are within walking distance from almost any location. (Enos, 2001). This sheds light on why Japan has been one of the first candidates to implement E-commerce type functions (also the US).

7-Eleven has also integrated other internet based services such as prepaid wireless connectivity. As part of the Wireless Speak Out program launched in April 2004, customers are provided with a pre paid wireless service for a small fee. In Canada for example, 7-Eleven Speak Out Wireless offers both pay-per-use plans and monthly plans. For pay-per-use, there is a non-government $1.25/month 911 fee charged by 7-Eleven, and long distance charges apply for calls outside the local calling area. Service may be increased with monthly add-ons such as SMS and unlimited mobile browsing. (Wales, 2009). Services such as 7-Eleven Speak Out Wireless portray 7-Elevens expansion into Internet and E-commerce systems.

References

Strong, S 2009, 7-Eleven improves supply chain process, Franchising,
Dallas, 2009, 7-Eleven® Appoints Supply Chain Exec As New Logistics VP, News Room
Howell, B, 2011, Live from #IFA: How 7-Eleven discovered the secret to success is service, SmartBlog on Leadership
Newswire Association, 2012, 7-Eleven Signs Contract Extension with EDS for Enterprise Application and Infrastructure Management, PRNewswire
SecurityPlus, 2012, Vcom at 7-Eleven, SecurityPlus
Health Business Week, 2010, 7 Eleven, Inc.; 7-Eleven Gives Back With '7-Eleven Coffee Cup With a Cause', ProQuest
Revitalizing the Slurpee Brand, OPPapers
2008, 7-Eleven finds SAP applications and IBM i provide the greatest convenience, IBM
The print edition, 2010, Japanese online retailing is on the rise, and its champion is spreading its wings, TheEconomist
Enos, L, 2001, One Year Ago: 7-Eleven To Tackle E-Commerce, Japanese Style, CommerceTimes

7-Eleven Canada, 2012, SpeakOut
7dream, 200, 7dream.com Open for Business
Wolverton, T, 2002, 7-Eleven puts Net shopping in stores, CNET

Similar Documents

Premium Essay

7 Eleven

...7-ELEVEN HOW TO TRUN THE SITUATION AROUND In April, 2011. Allen Zhang, the 7-eleven’s Chief Operator of Eastern Market in China, was standing in front of the window of his office. He was called into deep thought by the dilemma facing the company. On the video conferencing just held, headquarter in Taiwan was very dissatisfied with the poor performance of the branch office in Shanghai, which runs counter to its expectations. Allen looked at the crowded street. He found that the only 7-eleven convenience store on the street was besieged by two FamilyMart stores that were filled with customers. He couldn’t help wondering: What’s wrong with the company’s strategy that was so successful in such overseas markets as Japan, Taiwan, and US, but failed the competition in Shanghai? What contributes to the competitor’s success? Is it because the voluntary chain style that FmailyMart adopts is superior than the regular chain style that 7-eleven adopts in Shanghai? If 7-eleven were to open its market by changing the regular chain style to voluntary chain style, would it turn the situation around or would it evoke new problems? Obsessed with all of these questions, Allen realized that it is time for some changes for the company to achieve its initial goals and as the big market share as possible in this promising market. CONTEXT THE CVS (CONVENIENT STORE) INDUSTRY The prosperity of the convenient stores is because supermarkets are almost all of large scales and in the......

Words: 4172 - Pages: 17

Premium Essay

7 Eleven

................................................................................................................................... 5 c) Core Competencies and Strategic Advantages ......................................................................... 6 3. Target Market …................................................................................................................................... 6 a) Who is our target market? ….................................................................................................... 6 b) Market Segments …................................................................................................................. 7 c) Demographics …...................................................................................................................... 7 4. Marketing Strategies …........................................................................................................................ a) Product...

Words: 999 - Pages: 4

Premium Essay

7-Eleven

...7 – Eleven | | External analysisTeam members: Number of characters (including spaces, footnotes, end notes and text boxes): _22,999_Signatures of all the participating group/team members:_____________________________ __________________________________________________________ __________________________________________________________ ____________________________ | | Project no.: 1 Class and group number: Table of Contents Introduction 2 INTRODUCING 7-ELEVEN 3 Marketing mix 3 Product 3 Place 4 Price & Promotion 4 People 4 Process 4 Physical environment 4 Mission 5 Vision 5 Values 5 Objectives 6 Macro environment – PESTLE analysis 6 Political 7 Economical 7 Socio cultural 7 Technological 7 Environmental 8 Legal 8 Porters five forces analysis 8 Competitive analysis 11 Conclusion 12 List of sources: 13 Introduction The retail industry in Denmark had a very good performance in 2012, after continued stagnation over the review period. In general, the retail industry is sensitive to any economic fluctuations and therefore it was very much affected by the financial crisis which occurred 3 years ago. The crisis “shattered consumer confidence dragging out through 2009-2010.” Last year, in 2012, the reduction in unemployment, growth in incomes and prospects of economic recovery all “contributed to growing value sales in the majority of retail channels. “ Despite the......

Words: 6238 - Pages: 25

Premium Essay

7-Eleven

...and has no time to go to supermarket everyday and that triggers them to approach the convenient store. With many outlets and easy to access 24/7, 7-Eleven welcomes every customer to get their daily needs. We are providing groceries, snack foods, candies, instant foods, drinks, reading materials, and also services such as prepaid reload and ATM service where customers can fulfill their daily needs even though they don’t have time to shop. All of our 1,497 stores are open 24 hours everyday out of 7 days in a week to assure that customers can get anything they need anytime and anywhere. We create a simple and convenient as an adjustment toward people’s lifestyle, which is very mobile and active. With our motto, 7-Eleven will Always There For You. Company Description History Founded in 1927, 7-Eleven is known as The Southland Ice Company in Dallas, Texas whom the founder is J. C. Thompson. It was started as an ice vendor which eventually began offering milk, bread and eggs on Sundays and evenings when grocery stores were closed. The idea managed to satisfy the customer and also increased sales of the company. (7-Eleven Malaysia Sdn. Bhd., 2010) The first company’s convenient outlets were known as Tote’m stores which named since customers ‘toted’ away their purchases. It became 7-Eleven when the stores extended its business hours from 7 a.m. until 11 p.m. and open seven days a week. The company’s corporate name was changed from The Southland Corporation to...

Words: 3382 - Pages: 14

Premium Essay

7-Eleven

...With so many beverages and fresh food options at 7-Eleven stores, it's a wonder how 7-Eleven can keep up with it all. That is why we have gathered these fun facts because seeing is believing. 7-Eleven, Inc. 7-Eleven, Inc. is the world’s largest convenience store chain with more than 50,900 stores in 16 countries, of which nearly 10,200 are in North America, and the company has more outlets than any other retailer or food service provider. July 11 (7/11) is the official birthday of the 7-Eleven® convenience store chain. The company celebrates its 86th birthday this year. In 1927, convenience retailing began simply enough when an employee of Southland Ice Company in Dallas started selling milk, eggs and bread from the ice dock. Soon, the convenience store was born and became known as 7-Eleven to reflect the 7 a.m. to 11 p.m. hours of operation. For more than 15 years, 7-Eleven has been listed among Hispanic Magazine’s Corporate 100, the top companies providing the most opportunities to Hispanics. 7-Eleven adds another store to its worldwide operations every 2 hours. Industry Firsts 7-Eleven was the first to … operate 24 hours a day … sell fresh-brewed coffee in to-go cups ... have a self-serve soda fountain … and offer super-size fountain drinks. 7-Eleven aired the first television advertising by any convenience store; the animated commercial featuring a singing owl and rooster ran in 1949. 7-Eleven was the first retailer to offer fresh-brewed coffee in to-go......

Words: 1091 - Pages: 5

Premium Essay

7 Eleven Case

...Cornela Maria Rampengan 7- Eleven in Taiwan 7-Eleven Inc. was the world’s largest operator, franchisor and licensor of convenience stores, with annual sales of more than $ 62 billion. Its company become a pioneer the concept of convenience stores in the US, where it had 7.200 stores. This concept was also expanded to several countries, which are North America, Europe, and Asia and the largest store located in Asia. 7- Eleven was founded in 1927 as the Southland Ice Company in Dallas, Texas. It started by selling ice blocks and the first stores were known as “ Tote’m stores because customers “ toted” away the ice blocks. Tote’m changed its name to 7-Eleven in 1946, when the stores were open from 7 A.M. to 11 P.M. daily and during 1950s, 7-Eleven started moving beyond the Dallas market into other regions of Texas and also into Florida and Washington DC. By time being, they stay open 24 hours started by accident in 1962, at a store in Austin, Texas located close to the university campus. Mission of 7-Eleven : “ Meeting the needs of convenience-oriented customers by providing a broad selection of fresh, high quality products and services at everyday prices, speedy transactions and a clean, friendly shopping environment.” The concept of convenience stores that developed by 7-eleven was shaping the way American shopped, which is Americans shopped at big box stores and supermarkets for all their weekly or monthly supplies. Basically, three distinctive features of the......

Words: 1149 - Pages: 5

Premium Essay

7 Eleven Analysis

...7-Eleven Inc is the operator, franchisor and licensor of convenience stores. As an American company, it expanded the global market quickly and successfully, especially in Taiwan. Marketing is key to 7- Eleven’s success. In learning its global corporation’s marketing mix, I will mainly focus on following four parts. First, the company’s marketing strategy in the united state will be discussed. And then 7- Eleven’s market entry strategy in Taiwan will be focused on. Thirdly, marketing mix about 7-Eleven Taiwan will be analyzed deeply and critically. Last, some minor suggestion will be given to make 7-Elevendeveloped better in the further. The marketing strategy in the United States is innovative and unique. A tits initial stage, the decisive factors for this company’s success are that7-Eleven launched an innovative store and service in the United States and then entered into this “Blue Ocean”. As we can see, in 1940s, the concept of convenience store was challenging because shopping in convenience store is new and unfamiliar consumer behaviour for American people. As a store, it sells convenient service more than its product. So this is an innovative marketing segmentation. Moreover, the convenience store can meet the unsatisfied demand in American market. At the second stage, when the store expanded over its original market into other districts in America, the company took the standardization of business format, including the logo, location, store’s layout and merchandising...

Words: 864 - Pages: 4

Premium Essay

7-Eleven in Taiwan

...7-Eleven in Taiwan: Adaptation of convenient stores to new market environments – CASE – 1. How has the convenience-store concept evolved in the United States? The convenience store concept began when an enterprising employee of one of Tote’ms stores (now 7-Eleven), began offering milk, bread and eggs on Sundays. Customers found the service very convenient, thus the stores started opening for extended hours (from 7 am to 11pm) and therefore the name changed to 7-Eleven. In 1962, the stores started opening 24 hours 7 days a week, and this became increasingly popular due to the new working schedules of Americans. More than 10 million people in the U.S. were awake at 3 am, 7 million of whom were employed in some kind of work. This new American work style needed exactly what 7-Eleven was offering: a convenient store open at all times, offering fresh-high quality products and services at everyday fair prices, speedy transactions and a clean environment. 2. Is the concept universal across countries, including Taiwan? The concept of convenience stores follows similar lines in different countries outside the United States. In 1969, 7-Eleven opened its first international store and from them on, the company followed a successful global expansion that seemed to follow positive trends despite the local competition. Wherever a franchisee opened a 7-Eleven store, they had to follow some norms that the Americans found to be very important in representing its brand like the logo...

Words: 892 - Pages: 4

Premium Essay

Franchising Document

...Franchise Informational Brochure Process and Basic Information Copyright © 7-Eleven Inc. 2012. All rights reserved. This information is not an offer to sell a franchise. An offer can only be made in applicable states with authorized documentation. Our Franchise Disclosure Document (FDD) will disclose all the material facts about a 7-Eleven franchise. 7-Eleven Inc. One Arts Plaza; 1722 Routh Street, Suite 1000; Dallas, Texas 75201. REVISED 10/12 Table of Contents Introduction Letter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . What is franchising with 7-Eleven all about and how do I get started? 2 Financial Preview of the 7-Eleven Franchise System . . . . . . . . . . . . 3 What am I financially responsible for as a Franchisee? Franchisee Qualification Process at a Glance . . . . . . . . . . . . . . . . . . 6 What does the qualification process entail? Franchisee Basic Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . What are the basic qualifications to become a Franchisee? 7 Franchisee Experience Requirements . . . . . . . . . . . . . . . . . . . . . . . . What are the basic experience qualifications to become a Franchisee? 8 Franchisee Financial Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . 9 What are the basic financial qualifications to become a Franchisee? Copyright © 7-Eleven Inc. 2012. All rights reserved. This information is not an offer to sell a......

Words: 2963 - Pages: 12

Premium Essay

Question Case Study Seven Eleven

...1 i CASE STUDY ~ SEVEN-ELEVEN JAPAN CO. Established in 1973, Seven-Eleven Japan set up its first store in Koto-ku, Tokyo, in May 1974. The company was first listed on the Tokyo Stock Exchange in October 1979. In 2004 it was owned by the Ito-Yokado group, which also managed a chain of supermarkets in Japan and owned a majority share in Southland, the company managing SevenEleven in the United States. Seven-Eleven Japan realized a phenomenal growth between the years of 1985 and 2003. During that period, the number of stores increased from 2,299 to 10,303; annual sales increased from 386 billion to 2,343 billion yen; and net income increased from 9 billion to 91.5 billion yen. Additionally, the company's return on equity (ROE) averaged around 14 percent between 2000 and 2004. In 2004, Seven-Eleven Japan represented Japan's largest retailer in terms of operating income and number of stores. Customer visits to Seven-Eleven outlets totaled 3.6 billion that year, averaging almost 30 visits to a SevenEleven annually for every person in Japan. COMPANY HISTORY AND PROFILE Both Ito-Yokado and Seven-Eleven Japan were founded by Masatoshi Ito. He started his retail empire after World . War II, when he joined his mother and elder brother and began to work in a small clothing store in Tokyo. By 1960 he was in sole control, and the single store had grown into a $3 million company. After a trip to the United States in 1961, Ito became convinced that......

Words: 4572 - Pages: 19

Free Essay

Amsterdam 7 11

...Netherlands.   In regards to pharmaceuticals, they are not as prominently used as they are in the US, however the need for general over-the-counter medications are still there.  Products like Paracetamol, Advil and Condoms are commonly bought regularly by the Dutch consumer.  Therefore, the general pharmacy needs will be sold alongside general health care products like tooth-paste, deodorant, tooth brushes, shampoo and conditioner etc.  This assortment of merchandise meets the needs of the average Dutch consumer on a somewhat daily bases.  The combination of food, snacks and general health care is rare to find in the Netherlands, giving us a competitive edge.  Dutch people are known to be very simplistic, meaning it is important for the 7-Eleven to be quick, easy and necessary for the locals . Dutch...

Words: 3609 - Pages: 15

Premium Essay

Seven Eleven Case Analysis

...SEVEN-ELEVEN JAPAN CO. CASE ANALYSIS What is the future outlook for Seven Eleven Stores in USA? Seven-Eleven is part of an international chain of convenient stores. 7-Eleven, primarily operating as a franchise, is the world's largest operator, franchisor and licensor of convenience stores, with more than 46,000 outlets. The Seven-Eleven business model consists of five key elements: * A differentiated merchandising strategy; * Utilization of 7-Eleven’s retail information system & Managed distribution; * Providing a convenient shopping environment; and * A unique franchise model. Let us have a brief look over 7-Eleven stores in US and Japan: Seven-Eleven Japan: * High density market presence with 50-60 stores supported by distribution centre. * Limited geographical presence * Emphasized regional merchandizing * Processed and fast foods contributed to most of its sales * Products like food and beverages, magazines and consumer items such as soaps and detergents * Services offered like payment of electricity bills, telephone, gas bills, meal delivery services, 7 dream e-commerce, electronic money offering and many * Advanced information technology helped store to analyse store data every day morning and helps in having valuable shelf life * Information system installed in every outlet and linked to HQ, Suppliers and 7-eleven distribution centres. Uses ISDN to collect, process and feedback POS data quickly * Delivery......

Words: 772 - Pages: 4

Premium Essay

Swot of 7-11

...SWOT OF 7-ELEVEN 7-Eleven is part of an international chain of convenience stores, operating under Seven-Eleven Japan Co. Ltd, which in turn is owned by Seven & I Holdings Co. of Japan. Strengths* Real estate availability* Localized assortment* Convenience* High margins* Franchise model allows for faster expansion* Relatively standardized stores allow for more optimized operations | Weaknesses* High margins/prices* Limited assortment offering* Not perceived as a place to buy a complete meal* Not a first choice destination for shoppers* High turnover of staff | Opportunities* Fresh food offerings* Increase share of meals (i.e., breakfast, lunch, dinner, snacks)* Private label development | Threats* C-store competition and other small-box retailers (i.e., Fresh & Easy, Marketside)* QSR or similar companies (quick service restaurants); Starbucks, McDonald's, etc.* Higher shrinkage on fresh food could potentially impact margins | 7-Eleven successful in every countries because the company has earned its name being the largest in dealing with convenience store regarding franchising and licensing. Additionally, the stores of the company are being operated almost in 18 countries and spread is organized according to per capita basis in these countries. The store chains are covering all the leading countries like United States, Japan, Canada, Hongkong, Thailand and Malaysia. Besides that, 7-Eleven provide a complete range of product to the conscious customers facing time......

Words: 260 - Pages: 2

Premium Essay

Assignment 1: to Build or Buy

...pursue an opportunity and to make a profit (Scarborough, 2012). 7-Eleven is a very successful brand and franchise that is known worldwide. As a frequent patron of this established, an opportunity has been identified to directly compete with 7-Eleven. As a competitor in the convenience store market the establishment would be called G’s Stop N’ Go. As a direct competitor, research is necessary to understand the strengths and weaknesses of 7-Eleven to be able to compete and make effective decisions. From state to state and city to city 7-Eleven’s can be found everywhere are very visible and known. But based on the companies SWOT analysis a weakness that has been identified was the hacking of ATM machines that negatively impacted consumers’ loyalty (7-Eleven, Inc., 2013). FBI has investigated the case and stated that a Citibank server that processes ATM withdrawals at 7-Eleven convenience stores had been breached. ATMs hackings at 7-Eleven stores reflects the company's weak application security system (7-Eleven, Inc., 2013). To take advantage of this weakness, G’s Stop N’ Go would have industry proven application security system that are secure and up-to-date. That way customers can make purchases and use the ATM to make transaction without fear of hacking. Next G’s Stop N’ Go must have a wide selection of products at different price points to serve a wide range of customers. Just like how a consumer can go into an 7-Eleven and make a quick purchase of what he or she is......

Words: 2530 - Pages: 11

Premium Essay

Seven-Eleven Case Study

...Seven-Eleven Japan1 Established in 1973, Seven-Eleven Japan set up its first store in Koto-ku, Tokyo, in May 1974. The company was first listed on the Tokyo Stock Exchange in October 1979. In 2004 it was owned by the Ito-Yokado group, which also managed a chain of supermarkets in Japan and owned a majority share in Southland, the company managing 7-Eleven in the United States. On September 1, 2005, Seven & I Holdings Co., Ltd., was established as the holding company for Seven-Eleven Japan, Ito-Yokado, and Denny’s Japan. Seven-Eleven Japan realized a phenomenal growth between the years of 1985 and 2007. During that period, the number of stores increased from 2,299 to 12,034, annual sales increased from 386 billion to 2,574 billion yen; and net income increased from 9 billion to 91.5 billion yen. Additionally, the company’s return on equity (ROE) averaged around 14 percent between 2000 and 2004. In 2004, Seven-Eleven Japan represented Japan’s largest retailer in terms of operating income and number of stores. Customer visits to Seven-Eleven outlets totaled 4.1 billion in 2007, averaging almost 35 visits to a Seven-Eleven annually for every person in Japan. Company History and Profile Both Ito-Yokado and Seven-Eleven Japan were founded by Masatoshi Ito. He started his retail empire after World War II, when he joined his mother and elder brother and began to work in a small clothing store in Tokyo. By 1960 he was in sole control, and the single store had grown into a $3 million......

Words: 4121 - Pages: 17